Exam 9: Executing Strategy Through Organizational Design

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_____ control focuses on measurable results within an organization.

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Describe a limited liability company.

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A limited liability company (LLC) is a form of business that mixes attractive features of corporations and partnerships.The owners of an LLC are not personally responsible for debts that the LLC accumulates (like in a corporation) and the LLC can be run in a flexible manner (like in a partnership).When paying federal taxes, however, an LLC must choose to be treated as a corporation, a partnership, or a sole proprietorship.An LLC is not recognized by the federal government as a form of business.Instead, the ability to create a limited liability company (LLC) is granted in state laws.

_____ are relationships between equals in an organization.

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All profits of a sole proprietorship are the property of the owner.

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Creating a structure that effectively coordinates a firm's activities increases the firm's likelihood of being successful.

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The _____ principle states that each person should only report directly to one supervisor.

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One of the main reasons for changing an organization's structure is improving:

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A functional structure works best for organizations that offer wide variety of products lines.

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Strategic decision making in a simple structure tends to be highly centralized.

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Which of the following is used by executives when mapping out the vertical linkages in an organizational structure?

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Which of the following is true about horizontal linkages?

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Which of the following is a basic building block of an organizational structure?

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_____ allow executives to track how well the organization is performing, identify areas of concern, and then take action to address the concerns.

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A functional structure keeps costs low and creates efficiency.

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What is a boundaryless organization?

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Paul Kelly is the store manager at the Fresh Produce Grocery Store, in Cincinnati.He has a close friendship with Matthew, who works as a cashier at the store, with whom he shares an interest in comic books and graphic novels.This is an example of which of the following structures?

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_____ refer to unofficial relationships such as personal friendships, rivalries, and politics.

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The process of evaluating and rewarding employees' performance tends to be informal in organizations that follow a _____ type of organizational structure.

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Identify the key advantages and disadvantages of a matrix structure.

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Division of labor can improve efficiency.

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